THE 

COMMERCIAL  INTERESTS 

OF  NEW  YORK, 

AS    RELATED     TO    OUR     SYSTEM  OF 

TRANSPORTATION. 


Ex  JGtbria 

SEYMOUR  DURST 


CHEAP  TRANSPORTATION. 


At  a  meeting  ot  the  American  Cheap  Transpor- 
tation Association,  held  at  the  Aptor  House,  in 
this  city,  May  6th  »nd  7th,  nine  States  were  re- 
presented. 

Letters  were  received  from  Governor  John  A. 
Dix,   Governor  James  H.  Smith,  of  Georgia  ; 
Governor  C.  C.  Carpenter,  of  Iowa  ;  Hon.  William 
Windom,  United  States  Senator  from  Minnesota  , 
Hon.  D.  M.  Duboise,  Georgia ;  J.  B.  Hawley, 
Illinois;  A.  H.  Buckner,  Missouri  ;  B.  W.  Frobel, 
Georgia  ;  John  A.  Kassori,  Iowa  ;  Charles  Francis 
Adams,  Hon.  John  DavU,  President  Farmers'  Co- 
operative Union,  Kansas  ;  Geo.  M.  Stevens,  Sec- 
retary of  the  Farmers'  Association,  Illinois;  Hon. 
S.  B.  Moore,  Illinois  ;  Geo.  W.  Peek,  Wisconsin  ; 
A.  M.  MeKeel,  Fairfax  Gwnge  Patrons'  Hus- 
bandry, lov-  a  ;  N.  F.  Graves,  Kansas,  and  others. 
Numerous  telegrams  were  received  frcm  commer- 
cial, industrial  and  manulacturing  associations 
!rom  all  parts  of  the  couutry  approving  of  the 
call  tor  the  Convention  aud  biduiug  it  godspeed. 

The  following  officers  were  el  cted  for  theensu- 
ing  year  : 

President — Hon.  Josiah  Qnincy,  Boston,  Mass. 

Secbetaby-  K.  H.  Ferguson,  Troy,  New  York 

Tbeasubeb — F.  B.  Thurber,  New  York  City. 

Vice-Presidents— Lewis  A.  Thomas,  Iowa  ; 
Henry  Branson,  Kansas  ;  Gen.  Wist,  Wisconsin  ; 
W.  M.  Burwell,  Louisiana;  Gov.  Smith,  Georgia; 
J.  A.  Thomson,  West  Virginia  ;  Adelbert  Ames, 
Mississippi;  George  J.  Post,  New  \ork  ;  J.  B. 
Phiuney,  Illinois;  W.  S.  Wood,  Ohio;  E  0.  Stan 
nard,  Missouri;  J.  H.  Gray,  District  of  Columbia 


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J.  E.  Stetson.  New  Jersey  ;  F.  C.  Johnson,  Indi- 
ana; A.  Morrison,  Minnesota;  A.  G.  Dodge,  Ver- 
mont; E.  Wakely,  Nebraska;  ex-Gov.  Paddleford, 
Rhode  Hand  ;  Gen.  T.  C.  Hersey.  Maine  ;  J.  B. 
Sargent,  Connecticnt  ;  M.  D.  Wilbur,  Michigan  ; 
J.  M.  McArthnr,  Kentucky  ;  Daniel  Pratt,  Ala- 
bama ;  Heury  G.  Hull,  North  Carolina  ;  Colonel 
Palmer,  Sonth  Carolina. 

A  constitution  and  by-laws  were  reported  and 
adopted.  The  constitution  provides  that  the  or- 
ganization shall' be  known  as  "The  American 
Cheap  Transportation  Association,"  whose  object 
shall  be  the  cheapening  and  equalization  ot  rail- 
road transportation  rates  throughout  the  United 
States.  It  provides  for  a  subordinate  association 
in  each  State,  andregnlates  minor  matters  tor  the 
guidance  and  government  of  the  National  and 
State  Associations. 

The  committee  on  resolutions  reported  the  fol- 
lowing, which  were  adopted  : 

Whereas,  The  productive  industries  of  the  United 
States -plantation  and  farm,  mine  and  factory,  commer 
cial  and  mercantile— are-noi  only  the  sources  of  all  our 
national  and  individual  wealth,  but  ai-o  the  elements  on 
which  our  very  national  aud  individual  existence  de- 
pends; and 

Whereas,  All  raaterul  products  are  the  fruits  of  labor 
and  capital,  and  as  neither  labor  nor  capital  will  continue 
actively  employed  without  an  equivalent  measurably 
just:  and 

Whereas,  Great  na'ional  industries  are  only  sustained 
and  prospered  by  the  interchange  of  the  products  of  one 
section  of  country  for  tho.-e  of  another:  and 

Whereas,  1  tie  existing  rates  of  transportation  for  the 
varied  products  01  the  Union,  from  one  part  of  the  coun- 
try to  another,  and  to  foreign  eonntrk 8,  as  well  as  the 
transit  cusi  of  the  commodities  required  in  exchange, 
are,  in  many  instances  injurious,  ana  to  certain  interests 
absolutely  destructive,  arising,  in  part,  at  least,  irom  an 
insufficiency  of  avennes;  and 

Whereas,  The  great  material  want  of  the  nation  to-day 
ie  relief  from  the  present  rates  of  transit  on  American 
products;  therefore. 


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Resolved,  That  the  duty  of  the  hour  and  the  mission  of 

Ihis  association  is  to  obtain  from  Congress  and  the  several 
State  Legislatures  Ruch  legislation  as  maybe  necessary 
to  control  and  limit  by  law,  within  proper  constitutional 
and  legitimate  limits,  the  rates  and  charges  ot  existing 
lines  of  transportation;  to  increase,  where  practicable, 
the  capacity  of  our  present  water  ways,  and  to  add  such 
new  avenues,  both  water  and  rail,  as  our  immensely  in- 
creased internal  commerce  demands;  so  that  the  pro- 
ducer may  be  fairly  rewarded  for  his  honest  toll,  the  con- 
sumer have  cheap  products,  and  our  almost  limitless 
supplies  llnd  foreign  markets  at  rates  to  compete  with 
the  world. 

Resolved,  Thai  the  cheap  transportation,  both  of  per- 
sons and  property,  being  most  conducive  to  the  free 
movement  of  the  people,  and  the  widest  interchange  and 
consumption  of  the  products  of  the  different  parts  of  the 
Union,  is  essential  to  the  welfare  and  prospeiity  of  the 
country. 

Resolved,  That  the  constant  and  frequent  association 
of  the  inhabitants  of  remote  parts  of  the  United  States  Is 
not  only  desirable  but  necessary  for  the  maintenance  of  a 
homogeneous  and  harmonious  population  within  ihe 
vast  area  of  our  territory. 

Resolved,  That  the  bes't  interests  of  the  different  parHol 
the  country  also  demand' the  freest  possible  Interchange 
of  the  industrial  products  of  the  varied  climates  and  In- 
dustries of  ihe  United  States,  so  that  breadstuff's,  textile 
fabrics,  coal,  lumber,  iron,  sugar  and  various  products, 
local  in  iheir  production,  but  general  in  their  consump- 
tion, may  all  reach  the  consumer  at  the  least  practicable 
cost  of  transportation;  and  that  an  arbitrary  and  unne- 
cessary tax,  levied  by  the  transporter,  over  and  above  a 
fair  remuneration  lor  the  investment,  is  a  burden  upon 
the  producer  and  consumer  that  it  is  the  part  of  wise 
statesmanship  to  remove. 

Resolved,  That  certain  leading  railway  corporations  of 
the  country,  although  chartered  to  subserve  the  public 
welfare,  and  endowed  with  the  right  of  eminent  do  •  aln, 
solely  lor  tbat  reason,  have  proved  themselves  practically 
monopolies,  and  become  the  tools  of  avaricous  and  un- 
scrupulous capitalists,  to  be  used  ib  plunder  ihe  public, 
enrich  themselves,  and  impoverish  the  country  through 
which  they  mn. 

Resolved,  That  many  of  the  railway  corporations  of  the 
United  states  have  nor  only  disregarded  the  public  con- 
venience and  property,  but  have  oppressed  the  citizens, 
bribed  our  legislators,  and  defied  our  executives  and 
judges;  and  stand  to-day  the  most  menacing  danger  to 
American  liberty  and  to  republican  government. 

Resolved.  That  the  present  system  of  railway  mauage- 
mtnt,  having  billed  to  meet  the  just  expectations  and 
demands  of  a  long-suffering  people,  must  be  radically  re- 
formed and  controlled  by  the  strong  hand  ol  law,  both 
State  and  national,  and  railway  corporations  compelled 
to  perform  their  proper  functions  as  the  servants  and 
not  the  masters  of  the  people. 


5 


Resolved,  That  to  thla  end  we  invoke  the  aid  of  all 
fair-minded  men  In  all  States  of  the  Union  in  expelling 
and  exclU'  tug  from  the  halls  of  legislation,  from  our  ex. 
ecutive  offices,  and  from  the  Bench  such  railway  officials 
railway  attorneys,  or  other  hirelings  as  prostitBte  pnbhc 
office  10  ih<-  ba>e  uses  of  private  gain. 

Resolved.  That  leaving  different  section  and  >nterests 
that  desire  cheap  transportation  to  work  out  the  prob- 
lem in  snch  a  manner  as  they  may  deem  best,  we  earn- 
estly .nvoke  their  careful  consideration,  t heir  energetic 
action,  and  their  resolute  win  in  i emulating  and  con- 
trolling the  rates  of  transportation  and  giving  remuner- 
ative wages  :o  the  producer  and  cheap  products  to  the 
consumer  untaxed  by  unearned  charges  for  their  car- 
riage. 

Risolved,  That  we  invite  the  people  of  the  varions 
States  to  organize  subsidiary  associations — State,  county 
and  town— to  co-operate  with  the  national  association; 
that  the  power  to  accomplish  the  purposes  desired  rests 
absolutely  with  the  suflering  milions;  that  relief  is  in 
their  reach  and  costrol  by  united  action,  and  the  near 
future  will  give,  as  certain  as  its  need  !<>r  ail  time  and 
the  good  of  all,  the  true  solution  of  the  problem  of  cheap 
transportation. 

In  pursuance  of  the  spirit  of  the  last  resolution 
it  is  proposed  to  organize  in  this  city  an  auxiliary 
a»iociation  from  among  the  substantial  mer- 
chants, who  represent  so  large  a  portion  of  the 
commerce  ol  the  nation.  When  we  reflect  upon  the 
immense  snrus  paid  by  our  merchants  for  trans- 
portation, and  how  inseparably  our  business  in- 
terests are  linked  with  this  question,  it  is  a  matter 
of  wonder  that  business  men  have  not  before 
formed  an  association  to  protect  their  interests 
against  the  compactly  organized  combinations 
which  tne  railways  have  made,  in  order  that  they 
might  dictate  terms  to  shippers  and  receivers  of 
freight.  It  seems,  however,  that  it  was  not  to  be 
until  the  abuses  and  extortions  of  our  railway  sys- 
tem reused  the  farmers  and  merchants  of  the 
West  to  organize  for  self  defense ,  and  make  us 
the  suggestion  by  holding  a  convention  in  New 
York, for  the  purpose  of  forming  a  Nation  .1  Asso- 
ciation, combining  the  aroused  sentiment  of  the 


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different  States  at  the  West,  with  the  awakecing 

interest  in  this  question,  which  is  beginning  to 
be  evident  in  the  East. 

That  the  production  of  the  United  States  has 
grown  much  faster  than  our  facilities  for  trans- 
porting that  produce  ;  and  that  increased  facili- 
ties must  be  provided  by  our  National  Govern- 
ment is  evident  to  every  thinking  mind.  Nearly 
one-half  of  our  present  Members  of  Congress  are 
attending  a  convention  at  St.  Louis,  to  examine 
the  claims  which  that  city  advances  for  au  in- 
crease of  the  facilities  for  that  immediate  section. 
On  the  20th  ot  May,  a  Convention  of  Governors 
met  at  Atlanta,  Ga.,  to  examine  a  system  of  canals 
which  are  advocated  by  Governor,  Smith. 
Many  prominent  Western  men  are  looking  for  j 
the  construction  of  a  canal  through  Virginia, 
connecting  the  waters  ot  the  Ohio  and  Kanawha 
with  those  of  the  James  river,  and  thus  reaching 
tide  water  on  Chesapeake  Bay.  Other  and  minor 
schemes  to  facilitate  communication  with  the 
Northwest  by  increasing  the  means  to  reach  the 
Great  Lakes,  and  obtain  an  outlet  through  Can- 
ada and  by  the  Erie  canal  to  New  York  are  in 
progress,  and  are  being  pushed  with  varying 
prospect  of  success.  Many  of  the  clearest  think- 
ers and  most  practical  business  men,  however, 
seem  to  think  that  the  quickest,  surest  and  most 
permanent  way  to  obtain  relief  is  to  enlarge  the 
Erie  canal,  operate  it  with  eteam  power,  and,  ii 
addition,  have  the  Government  build  a  nationa 
trunk  railway  from  the  Mississippi  river  to  New 
York,  to  be  used  exclusively  for  freight  and  fre< 
to  any  company  or  person  who  might  choose  t< 
put  rolling  stock  thereon,  operate  it  under  s 

i 


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general  law,  and  pay  sufficient  toll  to  keep  the 
roadbed  in  order.  It  is  clear  that  a  large  portion 
of  the  produce  of  the  West,  such  as  live  stock, 
4c,  and  many  of  the  manufactures  of  the  East, 
must  be  transported  by  rail.  Railways  are  more 
in  accordance  with  the  spirit  of  the  times,  and 
the  facility  with  which  they  are  built  and 
operated  is  daily  improving.  One  great  diffi- 
culty which  New  York  merchants  experience  in 
increasing  their  business  relations  with  the  • 
West  is  the  delays,  uncertainties  and  ex- 
pense of  the  preseut  system  of  transportation. 
On  an  average,  it  takes  ten  days  to 
transport  freight  between  New  York  and  Chicago. 
With  a  natioual  road  exclusively  for  freight,  it 
would  take  butf'tree  nays,  and  this  is  on  a  supposi- 
tion that  trains  on  snch  a  road  would  only  average 
twelve  mile*  per  hour.  This  great  discrepancy 
in  time  is  caused  by  the  practice  al  present  in 
vogue  of  running  freight  over  passeuger  roads, 
the  freight  trains  haviug  to  keep  out  of  the  way 
of  passenger  trains,  making  it  possible  to  run 
only  about  one-sixth  ot  the  time,  and  then  at  a 
rate  of  speed  which  is  costly  and  dangerous.  The 
saving  in  interest  alone  on  the  immense  value 
of  produce  constantly  in  transit  between  the  East 
and  the  West,  upon  which  a  saving  in  time  of 
two-thirds  or  more  might  be  expected,  would  go 
far  in  a  lew  years  to  pay  tne  entire  cost  of  con- 
stiucting  such  a  road,  while  the  immense  in- 
crease in  the  business  of  New  York  resulting  from 
such  facilities  can  be  estimated  by  any  merchant 
doing  business  with  the  Great  West  It  is  esti- 
mated by  competent  railroad  men  that  a  saving 
of  oue-half  to  two-thirds  of  tue  expense  of  trans- 
porting freight  under  the  present  freight  system 
could  also  be  made;  and  when  the  delays  and  un- 
certainties now  attendant  upon  ordering  goods 
from  New  York  are  swept  away,  Western  mer- 
chants need  not  carry  as  large  stocks,  and  would 


8 


certainly  increase  the  frequency  and  amount  of 
their  dealings  with  this  market 

At  present  the  whole  country  is  paying  divi- 
dends not  only  upon  the  actual  amount  of  capital 
invested  in  building  railways,  but  also  upon  a 
tremendous  nominal,  or  fictitious  capital  created 
by  building  roads  with  the  proceeds  of  mortgage 
bonds,  while  the  stock  is  quietly  divided  by  the 
projectors  without  paying  a  cent  for  it,  and  in 
many  cases  has  been  doubled  ("watered")  so 
that  the  attention  of  the  public  would  not  be  at- 
tracted to  the  enormous  dividends.  Is  it  any 
wonder  that  the  people  complain  of  the  present 
charges  for  freight,  and  that  railway  managers 
accumulate  wealth  in  amount  beyond  the  dreams 
of  avsrice,  that  our  farmers  and  merchants 
find  it  hard  work  to  make  money,  and  that  our 
money  markets  are  manipulated  and  controlled 
by  these  monopolists,  to  the  detriment  of  all 
legitimate  business  ? 

It  is  certain  that  the  National  Government  must 
grapple  with  this  question,  and  give  au  oudet  to 
the  West  and  an  inlet  to  the  East.  This  question 
must  come  up  at  once — probably  at  the  next  ses- 
sion of  Congress — and  New  York  merchants 
should  not  sit  still  while  all  other  sections  of  the 
country  are  orgamziug  their  forces.  Impractica- 
ble and  injudicious  projects  may  be  undertaken 
because  they  are  pushed  by  well-organized  fac- 
tions ;  New  York  has  already  lost  enough  busi- 
ness by  the  abuses  of  the  present  system  of  trans- 
portation, and  it  behooves  her  merchants  to  have 
something  to  say  about  its  reform  and  the  man- 
ner in  which  it  shall  be  accomplished.  To  do  tnis 
requires  organization,  and  th?re  is  no  time  to  lose 
in  setting  abou;  it.  It  must  not  be  left  to  the 
care  of  committees  in  existing  trade  bodies,  but 
there  must  be  an  organization  formed  for  that 
special  object;  it  should  combine  the  greater  part 
of  our  mercantile  wealth,  character  and  abilitv, 
in  an  association  commensurate  with  the  magni- 
tude and  importance  ot  the  subject  with  which  it 
is  intended  to  grapple.  That  Ibis  can  bo  done, 
and  will  be  done  as  soon  as  our  merchants  glance 
at  the  situation  seems  a  certainty. 


